Short answer
- 1. Write down net income. 2. List fixed costs. 3. Estimate variable costs.
- 4. Income minus costs gives your savings share. 5. Compare with actuals every month.
- Add up seasonal costs (car insurance, school, heating) for the year and divide by 12.
- Use the last 3 months of real spending instead of guesses.
A household budget is a plan of a household's monthly income and costs. You can do the five steps below in one sitting over a weekend. As an example we use a renting household of two adults and one child.
Step 1: Set total income
Write down the net income the household receives regularly each month: salaries, side income, rent received, regular support. Do not add bonuses and annual payments to monthly income; use them for savings or seasonal costs when they arrive.
| Income | Monthly |
|---|---|
| Salary 1 | ₺42,000 |
| Salary 2 | ₺30,000 |
| Total net income | ₺72,000 |
Step 2: List fixed costs
Fixed costs are roughly the same every month and must be paid. They come first because they leave the least room for negotiation.
| Fixed cost | Monthly |
|---|---|
| Rent | ₺20,000 |
| Building fees | ₺1,500 |
| Electricity, water, gas (12-month average) | ₺3,200 |
| Internet and phone | ₺1,300 |
| Credit card installments | ₺3,500 |
| Child: school bus and courses | ₺4,500 |
| Subscriptions | ₺600 |
| Total fixed costs | ₺34,600 |
Step 3: Estimate variable costs
Variable costs change from month to month and you have control over them. Instead of guessing, work out the real average from the last 3 months of bank and card transactions.
| Variable cost | Monthly |
|---|---|
| Groceries | ₺14,000 |
| Transport (fuel, public transport) | ₺5,000 |
| Eating out and cafés | ₺3,500 |
| Clothing and personal care | ₺2,500 |
| Health and pharmacy | ₺1,000 |
| Seasonal costs share (car insurance, back-to-school, holidays) | ₺3,000 |
| Total variable costs | ₺29,000 |
Split the grocery budget into weeks: ₺14,000 a month is about ₺3,200 a week. A weekly limit prevents the "how did we spend all that" surprise at month end. For practical ideas on groceries and bills, see how to save money.
Step 4: Income minus costs = savings
₺72,000 - ₺34,600 - ₺29,000 = ₺8,400 (about 12% of income)
If the result is positive, transfer it automatically to a savings account on payday. Fill the emergency fund first (3-6 months of essential costs), then goal savings. If it is negative there are two routes: shrink the two largest variable items, or renegotiate a fixed cost (subscription, tariff, insurance).
butce.app puts your fixed costs, installments and remaining budget in a monthly view and shows which category is close to its limit.
Try FreeStep 5: Monthly review
A budget is not a document you write once and leave. In the first week of each month, take 15 minutes to check:
- Which category went over budget? Was it a one-off or a pattern?
- Did a rent increase, a raise or a new installment change fixed costs?
- Did the savings transfer go through?
In Turkey the legal cap on rent increases is the 12-month CPI average; for contracts renewed in September 2026 it was 31.79%. Note your contract's renewal month in your budget calendar.
One income or two?
In a single-income household the risk of losing income is higher. Raise the emergency fund target to 6 months and try to keep fixed costs under 50% of income.
In a dual-income household the main question is sharing: who contributes how much to shared costs, and how is personal spending kept separate? For sharing models and a monthly family meeting, see our family budget guide.
Frequently asked questions
Where do I start with a household budget?
First write down the household's monthly net income, then the fixed costs paid every month without change. What remains after subtracting fixed costs is what you share between groceries, transport, personal spending and savings.
How do I estimate utility bills?
Take the average of the last 12 months of bills. Gas and electricity change with the seasons, so winter months come in above the average and summer months below it. If your gas distributor offers an equal-installment payment plan, it smooths the budget.
How much should the grocery budget be?
There is no fixed ratio; it depends on household size and city. The most accurate figure is the average of your actual grocery spending over the last 3 months. Splitting it into a weekly limit and tracking it every week prevents month-end overruns.
How much should a household save?
10% of net income is a reasonable starting target. If fixed costs are high, start with 5% but do not drop savings to zero. Savings should be set aside on payday, not left to month end.
Sources
butce.app Editör Ekibi
This guide was written by the team behind butce.app, a budgeting app for tracking income, expenses, card installments and loans. Figures were checked against the official sources listed above; the article was last reviewed on .
This content is general information, not investment, tax or legal advice. Rates change, so check the official source before you decide.
